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Questions and Answers
What is the main trade-off considered when deciding between internal integration and outsourcing within a certain industry?
What is the main trade-off considered when deciding between internal integration and outsourcing within a certain industry?
- Lower entry costs for internal integration
- Higher administrative costs for external outsourcing
- Higher transaction costs for internal integration (correct)
- Lower administrative costs for external outsourcing
What is the crucial characteristic driving the diversification strategy of a company?
What is the crucial characteristic driving the diversification strategy of a company?
- Entry costs
- Economies of scale
- Transaction costs
- Economies of scope (correct)
Which factor influences the choice between different geographical targets for products?
Which factor influences the choice between different geographical targets for products?
- Entry costs (correct)
- Economies of scope
- Transaction costs
- Administrative costs
How does the vertical scope of the firm interact with the product scope?
How does the vertical scope of the firm interact with the product scope?
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What is the determining factor when deciding between vertical integration and organizing through market interaction?
What is the determining factor when deciding between vertical integration and organizing through market interaction?
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